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Energy Issues in BrazilAnne Timmreck & Andy Tonnesen
Objectives1. Discuss the main sources of Brazil’s energy
2. Discuss the positive and negative effects of said
sources
3. Discuss the effectiveness of each energy source
4. Globally compare energy sourcing
5. Estimate the future for Brazilian energy
Energy SourcesBrazil’s main energy sources can be separated into 6 categories...
1. Oil
2. Wind
3. Biofuels
4. Hydroelectric
5. Solar
6. Hydrogen
Energy Comparisons
Type of Energy Brazil The World
Hydroelectricity 78.8% 16.6%
Other Renewables 6.6% 3.7%
Total Fossil Fuels 11.9% 66.6%
Nuclear 2.7% 13.0%
Brazil’s Energy Production and Consumption
Oil
Oil in Brazil● Oil is a fossil fuel, formed from fossilized organic materials
● Technically but not practically renewable; takes millions of years to form
● Estimated that between ⅕ - ⅓ of potential energy in fossil fuels is usable and
available
● In Brazil, oil is used to supply thermoelectric plants and to power vehicles
alongside biofuels like Ethanol
● ⅓ All crude oil processed in Latin America is done in Brazil
● Brazil exported 215,000 barrels/day in 2014, and was the second largest producer
of petroleum in South America
● State controlled company Petrobas is dominant in the oil sector, tying oil into the
health of the state economically
Pros of Oil-based Energy● Relatively abundant
● Technologically available
● Power Plants already equipped to
work with the material, requiring
no new investment
● High energy density -- small
amounts of oil produce relatively
large quantities of energy
● Supports economic growth
● Currently reliable
Cons of Oil-based Energy● Non-Renewable
● Use/Burning contributes to all 6
Criteria Air Pollutants, including
high volumes of greenhouse gasses
● Contributes to Acid Rain and
Climate Change
● Hazardous to drill for, hazardous if
spilled
● Often contains carcinogenic
additives and other toxins
● Dependent on a resource that is
underground, limited, and must be
harvested with specialized
equipment
● Potential for drinking water
contamination
Pre-Sal Oil Fields Overview● Found in 2007, 18,000 feet below ocean surface and beneath a layer of salt in the
Santos Basin after oil was struck at the Tupi site
● The Pre-Sal fields are the largest discoveries in the past decade
● State’s dominant stakes in the company Petrobas gives it effective control over the
oil sector
● May 2014 yielded another pre-sal strike of an estimated 5 billion barrels
● Oil production rose from 41,000 b/d in 2010 to 1,000,000 b/d in 2016 increasing by
a factor of 24x due to the pre-sal fields
● Has led to production of pioneering deep water drilling technologies
● Produces b/d greater than the industry average
● Has become a driving economic factor
Pre-Sal Geology & Geography● Sequence of sedimentary rocks formed 100 million
years ago during the separation of South America
and Africa
● Large lakes formed at the site initially and filled
with organic matter from nearly all the rivers
surrounding the split
● Salt layer formed, covering this layer, as the Atlantic
Ocean formed
● Salt layer is currently 2000m thick
● Area measures ~800km long by ~200km wide and
~300km off shore
$4.45 vs. $2.57 Average gas prices in Brazil versus in the United States, in USD/gallon.
Difference is due to Petrobras’s market control, taxes, and a poor supply chain.
Sustainability?Oil is non-renewable, often difficult to get to by conventional means, and is a serious
pollutant along with other fossil fuels.
No.
It may be the most popular energy source globally right now, but it is a limited
resource and bad for the environment -- and people. Consumption rate is significantly
faster than harvesting rate.
Unless renewable, sustainable sources can be developed to replace it, we’ll be in
trouble once the crutch is pulled out from under us.
Biofuels
Biofuels in Brazil● Sugarcane-sourced rather than Corn-sourced, making it more efficient
than the US’s corn-based ethanol
○ Doesn’t drive up the price of foods
○ Sugarcane has become more profitable as fuel than as food
● Oil Embargo in the 1970’s kickstarted Brazil’s entry into the biofuel
industry; previously 80% of their oil was imported
○ Brazil has become a global biofuel powerhouse
Biofuel Industry Developments● Towns specialised all of their economic activity to center around
sugarcane and the biofuel industry
● Industry in crisis due to very low petroleum prices, the lowest in 30 years
○ Ethanol is among hardest - hit sectors during economic slowing, with 3/7 of
the major biofuel plants going bankrupt
○ Mechanization has cost the industry its high public support due to effect on
the available jobs
● Gov’t intervention to boost flex-fuel vehicles by incentivization has
helped bolster the industry
Pros of Sugarcane-Ethanol Biofuels● Reduces air pollution from tailpipe emissions
● Produces only 20% as much greenhouse gas as conventional
petroleum fuels
● Reduces petroleum use
● Potential to give Brazil a foothold in global markets
● Provides an affordable alternative fuel during oil price hikes
Cons of Sugarcane-Ethanol Biofuels● Process uses Sucrose: waste fibers, Bagasse, contain ⅔ of sugarcane’s potential
energy and liquid residue called Vanasse must be treated before disposal
● Technology to use these fibers is developing but prohibitively expensive
● Farming practices increase pesticide use and require more land
● Vulnerable to weather and climate changes; climatic requirements prevent it
from becoming globally useful
● Exacerbates land rights and land inequality, occupying land that could produce
food for the landless or be redistributed
● Distorts the land market by raising prices, preventing poor from acquiring
farmland
● The sugar industry’s profitability is dictated by the oil industry’s prices
Brazilian Flex-Fuel Fleet● 40% of gasoline needs have been replaced with sugarcane ethanol
● Most ethanol is consumed by the domestic market either pure or in a mixture
with gasoline
● Flex-Fuel Vehicles, introduced in 2003, greatly increased the popularity of ethanol
● >90% of new cars sold are FFV, and 60% of the total fleet are FFV, with the
remainder operating on only gasoline and expected to be mostly imports
● Sao Paulo is on the cutting edge of ethanol use for public transportation fleets
● Market infrastructure includes pumps with fuel options to accommodate different
types of cars and to allow for consumers to choose their fuel during price
fluctuations
● Mandatory 27.5% ethanol minimum in petrol fuels
Sugarcane Vs. Corn Based Ethanols● Corn starches must be converted
to sugar before distillation
● 50% of the dry mass can be used
for fuel
● Sugarcane requires no conversion,
reducing processing costs
● All of the sugarcane can
potentially produce energy
● One acre of sugarcane produces
more ethanol on average than one
of corn
Sugarcane’s energy balance is seven times greater than
corn’s.
Sustainability?Biofuels are often ineffective and inefficient, such as with corn-based ethanol in the
US, but where conditions are right it can be a valuable resource.
Yes... but with some limitations:
Politically, the production of biofuels is dubious given the imbalances in Brazil’s land
ownership.
Environmentally, the farming practices used to produce the monocultures can be
problematic or toxic.
Technologically, we have a way to go before using the whole product is cost effective.
Globally, the usefulness of this fuel depends greatly on climate and economic impacts.
Wind
Wind Energy in Brazil● Often overlooked in favor of oil along the coast
● First wind generator went into operation in 1992, but stagnated until the drought
in 2001 that bottlenecked the hydropower plants
● Part of the incentive program for alternate energy sources, PROINFA, which
established the industry and provided technology and jobs
● Capacity of 6.5 GW, the third main energy source after biomass and hydro
● Northeast is most productive due to uninhabited flatlands couple with high winds
● Was expected to have the 7th highest installed capacity by the end of 2015
Pros of Wind Energy● Reduces CO2 emissions by 11,600,000 tons
● Production does not involve harmful chemicals or emissions
● Renewable resource
● Production costs are falling
Cons of Wind Energy● Turbines tend to operate at ~30% capacity
● Severe storms or winds can damage turbines
● Blades of turbines can be hazardous to wildlife (birds, bats)
● Turbines have been known to interfere with signal reception for electronics
● Wind is intermittent
● Cost competitiveness is questionable
● Requires open land in areas of high wind speeds, often remote
Sustainability?In a country such as Brazil that has both land to place turbines and frequent high
winds, there isn’t much question.
Yes!
Although wind may not be capable of becoming the main source of power, its
contributions and benefits can’t be discounted, and it can make up for limitations in
other kinds of alternate energy.
Hydroelectric
Hydroelectricity in Brazil● Hydroelectricity is electricity that is made by the movement of water. It is usually
harnessed through dams that block a river to form a reservoir and collect water.
Once the water is released, the vast pressure behind the dam forces the water
down pipes that lead to a turbine. This water forces the turbine to spin, causing a
generator to turn and harness the energy potential from the water in the form of
electricity.
● Hydroelectricity is the source of upwards of 70% of the energy used in Brazil
today.
● Currently Brazil's hosts 44 hydroelectric dams, and is home to Itaipu dam, which
at one time was the world leader in electricity production.
Hydroelectric Influence: Brazil: 78.8% The World: 16.6%
Pros and Cons of HydroelectricityPros
● Produces vast amount of
renewable energy (70%)
● Creates jobs (construction, design,
operations)
● Inexpensive electricity (0.85 cents
per KWh)
● Renewable energy source
Cons
● Flooding of occupied regions
● Displacement of residents and
destruction of ecosystems
● Habitat loss (Pink River Dolphin)
● Possible water pollution
Itaipu Dam
In 1984, Itaipu dam began harnessing the
energy of the Parana River.
It has a potential of 14GW.
In 2013 the plant generated a record
98.6TWh, providing 75% of the energy
consumed by paraguay and 17% of the
energy consumed by Brazil.
Dams Across the NationRank Plant/Dam River State Capacity
1 Itaipu Paraná Paraná 14,000 MW
2 Belo Monte Xingu Pará 11,233 MW
3
São Luiz dos
Tapajós Tapajós Pará 8,381 MW
4 Tucuruí Tocantins Pará 8,370 MW
5 Ilha Solteira Paraná São Paulo 3,444 MW
6 Jirau Madeira Rondônia 3,300 MW
7 Xingó São Francisco
Alagoas and
Sergipe 3,162 MW
8 Santo Antônio Madeira Rondônia 3,150 MW
9 Paulo Afonso IV São Francisco Bahia 2,462 MW
10 Jatobá Tapajós Pará 2,338 MW
Environmental Impacts of Hydroelectric Dams● Habitat/Land loss
● Flooding/Drought
● Increased sediment
● Algae blooms
● Erosion/ Weakened soils
● Disrupted wildlife migration patterns
● Fragmented habitats and territories or wildlife
● Increased CO2 emissions ( up to 0.5 lbs per KWh)
Sustainability?Hydroelectric is no doubt a renewable energy source, but is it truly sustainable? And at
what cost?
Residents are forced from their homelands after they become flooded by the reservoirs
created by the dams.
Entire ecosystems, become destroyed and flooded killing off the flora and either killing
or forcing out the fauna.
Pink River Dolphins, and endangered species, are losing valuable habitat through
fragmented rivers caused by dams.
Solar
Solar in Brazil● Solar electricity generation represents a clean alternative to electricity from fossil
fuels, with no air and water pollution, no global warming pollution, no risks of
electricity price spikes, and no threats to our public health.
● Solar photovoltaic panels convert the sun's energy to direct current (DC)
electricity, this energy is converted to alternating current (AC) through an
inverter, at this point, the electricity usable and transferable.
● Brazil has one of the highest solar energy potential, 4.25 to 6.5 hours a day of peak
sun.
● Currently there are only 1300 grid connected solar facilities in Brazil
Solar Auctions in Brazil● In Brazil's “reverse” power auction mechanism, the government sets a maximum
price for the megawatt-hour (MWh) and energy companies bid down the price to
the lowest rate which they are willing to sell energy to the public. Companies that
bid the lowest price, often sign a 20-year power purchase agreement with
distribution companies, which are mandated to purchase power via the auctions,
driving the cycle.
● Three solar power auctions have been held to date (December 2015). The
auctions secured approximately R$ 12 billion ($3 billion USD) in investments for
the next three years and attracted a number of domestic and international players
into the solar energy market.
● Brazil plans to boost the number of grid connected solar plants from 1,300 at the
end of 2015 to approximately 1.2 million by 2024.
Pros and Cons of SolarPros
Most renewable resource
No pollution/Clean energy
Less expensive than fossil fuels
Little to no environmental impacts
Cons
Expensive installment
More expensive than hydroelectricity (12.2 cents
per KWh)
Uses a vast open area, taking up valuable space for
agriculture
Sustainability?Solar is no doubt a renewable energy source, but is it sustainable? And at what cost?
Yes with minimal impacts!
Solar is clean, efficient, and the most renewable energy source!
Yes, it may take away a few fields from farmers trying to graze their cattle, but the
benefits outway the costs
Hydrogen
Hydrogen in Brazil● Hydrogen is the simplest element. An atom of hydrogen consists of only one
proton and one electron. It's also the most plentiful element in the universe.
● In order for hydrogen to be used as a fuel it must undergo a chemical reaction.
● A fuel cell combines hydrogen and oxygen to produce electricity, heat, and water.
Fuel cells are often compared to batteries. Both convert the energy produced by a
chemical reaction into usable electric power. However, the fuel cell will produce
electricity as long as hydrogen is supplied, never losing its charge.
● There is virtually no pollution, the only byproduct is pure, drinkable water.
Hydrogen Bus Project● Brazil’s Ministry of Mines and Energy and São Paulo Metropolitan Urban
Transport Company have officially launched the country’s first hydrogen fuel-cell
bus project, in partnership with the United Nations Development Program, the
Global Environment Facility, and the Projects Funding Body.
● The $16-million project consists of the purchase, operation, and maintenance of
five hydrogen powered passenger busses, a station for hydrogen production, and
fuel supply for the buses. These new busses will be used in São Paulo for four
years and are expected start running in the experimental phase next year (2006).
● On March 20th, 2016 two busses were finally implemented into service in São
Bernardo do Campo.
Pros and Cons of Hydrogen Pros:
● No pollution
● Creates pure drinkable water
● Fuel cells will never lose charge as
long as fuel is present
Cons:
● Inefficient conversion of electricity
(15% to 35%)
● Dangerous/ Explosive
● Expensive
● Utilizes other resources to create
(renewable and fossil fuels)
Sustainability?Hydrogen is considered a renewable resource, but is it sustainable? And at what cost?
In order to create hydrogen as a fuel, it is needed to force water to undergo electrolysis
or it is needed to burn fossil fuels. This seems counter productive.
Hydrogen can be a valuable tool, but not a sustainable one.
To create a resource , you must exploit others is not a sustainable practice, especially if
the exploited resources can create energy more easily and efficiently.
Overall, a
NO.
Where will Brazil be in ten years?
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https://cleantechnica.com/2016/01/14/brazil-doubles-2024-solar-power-targe
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http://thebrazilbusiness.com/article/hydro-electricity-in-brazil
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https://biowesleyan.wordpress.com/first-generation-biofuels/ethanol/case-study-brazil/sugarcane-vs-corn-based-ethanol/
● Rapoza, K. (2016, September 26). Brazil's Crazy Gasoline Prices Will Keep Petrobras Investors Happy. Retrieved January
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